JSW Steel Ltd., India’s largest producer, is considering a bid for as much as a 20% stake in Teck Resources Ltd.’s steelmaking coal business, people with knowledge of the matter said.

JSW has expressed preliminary interest, said the people, who asked not to be named because the information is confidential. Mumbai-based JSW also is in discussions with banks over potential financing for the acquisition, which may total about $2 billion, they said.

Deliberations are at an early stage, and details such as price and timing could change, the people said.

JSW didn’t immediately respond to queries sent outside normal business hours. Teck declined to comment.

India Plans More Steel Products in Manufacturing Incentive Plan

The Vancouver-based miner had planned to carve out its coal business but was forced back to the drawing board after canceling a shareholder vote on a spinoff in late April because of a lack of support.

Rival Glencore Plc subsequently proposed buying the unit for cash. Teck confirmed it was engaging with Glencore on the preliminary, nonbinding proposal, among others.

Those talks come after Teck rejected Glencore’s unsolicited $23 billion takeover bid. The commodity giant has said its offer remains on the table.

--With assistance from Jacob Lorinc.